IBEC - Newsroom

IBEC, the group that represents Irish business, today said that the Exchequer returns for the first half of the year show a worrying fall in Exchequer spending on the public capital investment programme.

Commenting on the Exchequer returns to the end of June, IBEC Senior Economist Fergal O'Brien said: "Businesses are very concerned that Government will not meet its targets for public capital investment this year. While current expenditure is running marginally ahead of budget, capital investment is a substantial 25% behind target. While there may well be timing issues at play here, it is vital that Government remains committed to its own capital investment targets.

"The tax revenue position has continued to stabilise in recent months, but the under performance of the important income tax head remains a concern. The Exchequer numbers again highlight the risk of a jobless recovery and point towards the urgent need for measures to support domestic demand and employment. It won't feel like this recession is over until firms have the confidence to start re-hiring again."